State monitor will oversee the school district in Elmwood Park

The NJ Education Commissioner announced the appointment of State Monitor Thomas Egan in the Elmwood Park School District to oversee finances and spending at a school board meeting on Jan. 7.

Commissioner Christopher Cerf said the appointment occurs in districts where "serious fiscal deficiencies have been identified in annual financial audits."

He cited the most recent Comprehensive Annual Financial Report (CAFR) which identified an unresolved financial deficit and "a weakness in internal controls."

District auditor Steven Wielkotz said this month that the district's deficit had tripled in 2012 from $700,000 to approximately $2.2 million.

According to state law, districts that have identified a deficit for two consecutive years must have an appointed monitor for a two-year period or less, said Superintendent Dr. Richard Tomko.

Tomko said the district had managers working with it to correct the issue, but it was informed early in January that a state monitor had been appointed.

Egan's contract will run for two years starting this month, but it may be extended. He will oversee fiscal management and expenditure in the district, according to Cerf. He will be responsible for business activities, including preparing a monthly financial report, approving all purchases, overseeing payments and improving the operations of the business office.

The state monitor has the ability to hire, promote and terminate employees, according to state statute. He also has the authority to override a chief school administrator's action and a Board of Education vote.

"We are here to work with you and collaboratively in a completely non-recriminatory way..." said Cerf, addressing the board.

Egan is a retired school business administrator who worked in Bergenfield for 16 years. Most recently, he served in Garfield as the interim school business administrator where he worked on two budgets. He holds a certificate in school business administration.

Egan will attend all board meetings, including closed sessions. He will be compensated at $93 per hour on a full-time basis, a salary that is fixed by the commissioner and may be adjusted as the commissioner deems appropriate. According to state law, the school district must assume the total cost of the state monitor. Egan reports directly to the commissioner.

Residents who spoke at the meeting questioned how the struggling district would afford Egan's salary. Egan would not comment on his salary, which residents and officials pointed out, could potentially exceed the superintendent's. Tomko said later in an interview that in order to pay Egan's salary, he will most likely be made a part of the staff. Similar to another employee, he said, his salary will become part of the budget cycle.

During the public portion, Egan clarified that the district would not be receiving funding from the state as a direct result of his appointment, but said that he will try to get additional funding from the state.

Tomko said the district has tried unsuccessfully to get additional funding, including reaching out to the municipality.

Elmwood Park Mayor Richard Mola said that while he was unhappy about the state's involvement in the borough's schools, the mayor and council have "no control" over the schools.

"You're never happy when the state is forced to come in and overlook the finances of any department," said Mola. "It's not a pleasant thing."

Last April, the board went to the governing body to ask for funds to help cover the roughly $300,000 cost of busing nearly 1,000 students in the borough after the district eliminated courtesy busing due to budget constraints.

"We haven't even gotten to the talking point on it," said Mola. "He [Tomko] sent us a letter and we haven't responded to it yet."

Utilizing the borough's dedicated $2.54 million surplus to cover busing, however, was not something members of the governing body expressed a willingness to do at the April 5 council meeting.

"As far as I'm concerned, we'll deal with Tomko and the state," said Mola. "I don't really know what the town has to do with it."

He added that the borough residents had the option to pass the $25 million, three-question school referendum in November, but voted against it.